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Home Management test bank & Solution Manual Operations Management, Global Edition 12Th Edition By William Stevenson – Test Bank
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Operations Management, Global Edition 12Th Edition By William Stevenson – Test Bank

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Operations Management, Global Edition 12Th Edition By William Stevenson – Test Bank

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Chapter 03

Forecasting


True / False Questions

1.

Forecasting techniques generally assume an existing causal system that will continue to exist in the future. 
 
True    False

2.

For new products in a strong growth mode, a low alpha will minimize forecast errors when using exponential smoothing techniques. 
 
True    False

3.

Once accepted by managers, forecasts should be held firm regardless of new input since many plans have been made using the original forecast. 
 
True    False

4.

Forecasts for groups of items tend to be less accurate than forecasts for individual items because forecasts for individual items don’t include as many influencing factors. 
 
True    False

5.

Forecasts help managers both to plan the system itself and to provide valuable information for using the system. 
 
True    False

6.

Organizations that are capable of responding quickly to changing requirements can use a shorter forecast horizon and therefore benefit from more accurate forecasts. 
 
True    False

7.

When new products or services are introduced, focus forecasting models are an attractive option. 
 
True    False

8.

The purpose of the forecast should be established first so that the level of detail, amount of resources, and accuracy level can be understood. 
 
True    False

9.

Forecasts based on time-series (historical) data are referred to as associative forecasts. 
 
True    False

10.

Time-series techniques involve the identification of explanatory variables that can be used to predict future demand. 
 
True    False

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